When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Applied Therapeutics, Inc.’s (NASDAQ:APLT) instance, it’s good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Applied Therapeutics
The Last 12 Months Of Insider Transactions At Applied Therapeutics
Over the last year, we can see that the biggest insider purchase was by Chief Medical Officer Riccardo Perfetti for US$126k worth of shares, at about US$1.98 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being US$0.95). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 225.92k shares for US$219k. On the other hand they divested 27.32k shares, for US$26k. In the last twelve months there was more buying than selling by Applied Therapeutics insiders. Their average price was about US$0.97. I’d consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Applied Therapeutics is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Applied Therapeutics Insiders Are Selling The Stock
We have seen a bit of insider selling at Applied Therapeutics, over the last three months. Insiders only netted US$24k selling shares, in that period. It’s not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn’t bother us.
Does Applied Therapeutics Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 8.7% of Applied Therapeutics shares, worth about US$4.0m, according to our data. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
What Might The Insider Transactions At Applied Therapeutics Tell Us?
While there has not been any insider buying in the last three months, there has been selling. But the sales were small, so we’re not concerned. However, our analysis of transactions over the last year is heartening. The transactions are fine but it’d be more encouraging if Applied Therapeutics insiders bought more shares in the company. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Applied Therapeutics. Our analysis shows 6 warning signs for Applied Therapeutics (3 are significant!) and we strongly recommend you look at them before investing.
Of course Applied Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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